Jay Picard v. Katherine Knight

Kentucky Supreme Court·Decided October 24, 2024·No. 2023-SC-0043·Published

Opinion

RENDERED: OCTOBER 24, 2024 TO BE PUBLISHED

Supreme Court of Kentucky 2023-SC-0043-DG

JAY PICARD APPELLANT

ON REVIEW FROM COURT OF APPEALS V. NO. 2022-CA-0022 PULASKI CIRCUIT COURT NO. 17-CI-00222

KATHERINE KNIGHT APPELLEE

OPINION OF THE COURT BY JUSTICE THOMPSON AFFIRMING

Pursuant to Kentucky Rules of Civil Procedure (CR) 68, Jay Picard sought an award of attorney fees and costs in a child support modification matter. The Pulaski Family Court denied Picard’s motion and the Court of Appeals affirmed. We conclude Kentucky Revised Statutes (KRS) Chapter 403 generally, and KRS 403.220 specifically, preempt our offer of judgment rule, CR 68, from having any application to family law matters. Accordingly, we affirm.

I. FACTUAL AND PROCEDURAL BACKGROUND Katherine Knight and Picard are the parents of X.C.P. (child). They were never married.

On March 6, 2017, when child was two months old, Knight filed a petition with the family court for custody of child, requesting joint legal custody, equal timesharing, and appropriate child support. On January 7,

2019, an agreed order of child support was entered which obligated Picard to provide child’s health insurance and pay $500 a month in child support. This was acknowledged to be a reasonable deviation from the child support guidelines based upon equal timesharing.

The parents’ cooperation deteriorated, and a contentious process ensued involving multiple issues. On May 11, 2020, Knight filed a motion for review and modification of child support on the basis that there was an alleged material change in their circumstances. On May 14, 2020, Picard filed a motion, seeking a reduction in his child support obligation and requesting an evidentiary hearing.

Knight and Picard proceeded to request discovery from each other regarding their financial records. Picard produced some financial records but did not respond to all such requests. On October 1, 2020, the family court granted Knight’s motion to compel discovery within ten days by an order entered on October 5, 2020.

On October 2, 2020, Picard’s counsel emailed Knight’s counsel offering to settle and pay $150 in child support a month. Picard’s counsel specifically cited rule CR 68.

Knight did not accept this offer. According to Knight, Picard did not produce all of the required discovery materials until October 23, 2020, twenty- one days after the offer was made and eleven days after it expired.

Following an evidentiary hearing, on June 9, 2021, the family court resolved five motions with findings of fact, conclusions of law and an order. As

to the motion to modify child support, the family court concluded that the parties should retain joint custody and equal timesharing, and “neither party shall pay child support as their incomes equal out.” The family court made this order effective as of May 14, 2020, and ordered Knight to repay Picard $6,000 in overpayments. The family court resolved all other outstanding issues, including denying Knight’s motion for reimbursement of attorneys’ fees pursuant to KRS 403.340. 1 On July 1, 2021, Picard filed a motion for CR 68 costs consisting primarily of attorney fees, arguing that he was entitled to be reimbursed pursuant to CR 68(3) because Knight “ran up” his discovery costs after he offered her a settlement, and she received less in child support than his offer. Picard attached an affidavit from his attorney indicating that no less than $15,000 of attorney fees and costs were incurred after his offer of settlement.

On October 15, 2021, the family court denied Picard’s motion for attorney fees, concluding that in family law matters KRS 403.220 governs whether awarding attorney fees is appropriate, and such an award would be inequitable where the parties had modest, roughly equal incomes. The family court also concluded that even if KRS 403.220 were not controlling, Picard’s offer of judgment only covered the issue of child support while there were other issues to be resolved. The family court also stated that CR 68 applied to

1 Knight proceeded under KRS 403.340(7), which was subsequently

renumbered as KRS 403.340(6); it provides “[a]ttorney fees and costs shall be assessed against a party seeking modification if the court finds that the modification action is vexatious and constitutes harassment.”

matters of law and not equity and applying CR 68 to a family court matter would have a chilling effect on parties seeking appropriate resolutions.

The Court of Appeals affirmed on alternative grounds. We accepted discretionary review and set the matter for oral argument.

During oral argument, Picard agreed CR 68 should not be applied to resolutions of child custody matters but argued that family law practitioners need CR 68 as an “arrow in their quiver” to encourage settlement of financial claims in domestic relations actions. He rejected that CR 11 is sufficient to prevent frivolous filings.

II. ANALYSIS

Picard argues that the Court of Appeals erred when it affirmed the family court’s decision not to grant him a CR 68(3) attorney fee hearing where he properly qualified for attorney fees and costs pursuant to CR 68.

“Determining the correct reading of a statute is a question of law that we review de novo without affording deference to lower courts.” McCann v. Sullivan Univ. Sys., Inc., 528 S.W.3d 331, 333 (Ky. 2017). This same standard applies for interpreting our civil rules. Smith v. McCoy, 635 S.W.3d 811, 814 (Ky. 2021).

Therefore, we give no deference to either the family court’s determination that CR 68 is preempted from any application in family law matters or to the Court of Appeals’ affirmance based on its interpretation that CR 68 does not permit legal fees as costs here because Knight was not a prevailing party.

We conclude that CR 68 is preempted by KRS Chapter 403, and attorney fees and costs cannot be awarded in family court proceedings pursuant to CR

68. KRS 403.220 provides the primary basis under Chapter 403 for the award of attorney fees and costs and, because CR 68 is inconsistent with it, KRS 403.220 controls over CR 68 regarding how attorney fees and costs can be awarded. We do not directly address the Court of Appeals’ basis for affirming as we have no need to render an advisory opinion on who would generally qualify as a prevailing party under CR 68.

A. A General Comparison of KRS 403.220 and CR 68.

KRS 403.220, which applies in all family law matters contained in KRS Chapter 403, states in relevant part as follows:

The court from time to time after considering the financial resources of both parties may order a party to pay a reasonable amount for the cost to the other party of maintaining or defending any proceeding under this chapter and for attorney’s fees, including sums for legal services rendered and costs incurred prior to the commencement of the proceeding or after entry of judgment.

CR 68, which generally applies in civil matters, provides as follows:

(1) At any time more than 10 days before the trial begins, a party defending against a claim may serve upon the adverse party an offer to allow judgment to be taken against him for the money or property, or to the effect specified in his offer, with costs then accrued. The offer may be conditioned upon the party’s failure in his defense. If within 10 days after service of the offer the adverse party serves written notice that the offer is accepted, either party may then file the offer and notice of acceptance, together with the proof of service thereof, and thereupon judgment shall be rendered accordingly, except when the offer is one conditioned upon failure in defense, in which case the judgment shall be rendered when the defense has failed.

Free access — add to your briefcase to read the full text and ask questions with AI

Jay Picard v. Katherine Knight, (Ky. 2024).

Jay Picard v. Katherine Knight (Jay Picard v. Katherine Knight) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Marek v. Chesny
473 U.S. 1 (Supreme Court, 1985)
Ankenbrandt Ex Rel. L. R. v. Richards
504 U.S. 689 (Supreme Court, 1992)
Kimberly G. McLaughlin v. James Cotner
193 F.3d 410 (Sixth Circuit, 1999)
Mohr v. Mohr
573 S.E.2d 729 (Court of Appeals of North Carolina, 2002)
Leeming v. Leeming
490 P.2d 342 (Nevada Supreme Court, 1971)
Moss v. Moss
639 S.W.2d 370 (Court of Appeals of Kentucky, 1982)
Coleman v. Coleman
269 S.W.2d 730 (Court of Appeals of Kentucky (pre-1976), 1954)
Harbit v. Harbit
3 So. 3d 156 (Court of Appeals of Mississippi, 2009)
Hessel v. Hessel
424 N.W.2d 59 (Michigan Court of Appeals, 1988)
Neidlinger v. Neidlinger
52 S.W.3d 513 (Kentucky Supreme Court, 2001)
Moore v. Moore
577 S.W.2d 613 (Kentucky Supreme Court, 1979)
Gentry v. Gentry
798 S.W.2d 928 (Kentucky Supreme Court, 1990)
Richey v. Richey
389 S.W.2d 914 (Court of Appeals of Kentucky (pre-1976), 1965)
In Re the Marriage of Marshall
781 P.2d 177 (Colorado Court of Appeals, 1989)
Smith v. Smith
180 S.W.2d 275 (Court of Appeals of Kentucky (pre-1976), 1944)
Cox v. Cox.
382 P.3d 288 (Hawaii Supreme Court, 2016)
Pyro Mining Co. v. Kentucky Commission On Human Rights
678 S.W.2d 393 (Kentucky Supreme Court, 1984)
Cummings v. Cummings
292 S.W.3d 819 (Court of Appeals of Arkansas, 2009)
Rumpel v. Rumpel
438 S.W.3d 354 (Kentucky Supreme Court, 2014)